PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
USA - NASDAQ:PZZA - US6988131024 - Common Stock
48.66 USD
-0.96 (-1.93%)
48.66 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PZZA. PZZA was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of PZZA while its profitability can be described as average. PZZA is quite expensive at the moment. It does show a decent growth rate. Finally PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PZZA was profitable.
PZZA had a positive operating cash flow in the past year.
PZZA had positive earnings in each of the past 5 years.
In the past 5 years PZZA always reported a positive cash flow from operatings.
1.2 Ratios
PZZA has a better Return On Assets (8.39%) than 81.20% of its industry peers.
PZZA has a better Return On Invested Capital (15.93%) than 83.46% of its industry peers.
PZZA had an Average Return On Invested Capital over the past 3 years of 19.10%. This is above the industry average of 15.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROIC | 15.93% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
1.3 Margins
PZZA has a Profit Margin (3.58%) which is comparable to the rest of the industry.
PZZA's Profit Margin has improved in the last couple of years.
PZZA's Operating Margin of 5.95% is in line compared to the rest of the industry. PZZA outperforms 42.86% of its industry peers.
PZZA's Operating Margin has improved in the last couple of years.
PZZA's Gross Margin of 27.24% is on the low side compared to the rest of the industry. PZZA is outperformed by 80.45% of its industry peers.
PZZA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% |
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PZZA is creating value.
PZZA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PZZA has been increased compared to 5 years ago.
Compared to 1 year ago, PZZA has an improved debt to assets ratio.
2.2 Solvency
PZZA has an Altman-Z score of 3.81. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.81, PZZA is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
PZZA has a debt to FCF ratio of 13.58. This is a negative value and a sign of low solvency as PZZA would need 13.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.58, PZZA is in line with its industry, outperforming 51.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.87
WACC8.52%
2.3 Liquidity
PZZA has a Current Ratio of 0.82. This is a bad value and indicates that PZZA is not financially healthy enough and could expect problems in meeting its short term obligations.
PZZA has a Current ratio (0.82) which is comparable to the rest of the industry.
A Quick Ratio of 0.69 indicates that PZZA may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, PZZA is not doing good in the industry: 60.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PZZA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.72%.
Measured over the past years, PZZA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
The Revenue has decreased by -1.46% in the past year.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)-32.72%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-32.79%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%4.19%
3.2 Future
PZZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.87% yearly.
PZZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y-23.57%
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
EPS Next 5Y17.87%
Revenue Next Year3.06%
Revenue Next 2Y1.99%
Revenue Next 3Y2.02%
Revenue Next 5Y6.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PZZA is valuated quite expensively with a Price/Earnings ratio of 26.59.
PZZA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. PZZA is around the same levels.
Based on the Price/Forward Earnings ratio of 21.08, the valuation of PZZA can be described as rather expensive.
PZZA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, PZZA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 21.08 |
4.2 Price Multiples
PZZA's Enterprise Value to EBITDA is on the same level as the industry average.
65.41% of the companies in the same industry are more expensive than PZZA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.21 | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
PZZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.79
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, PZZA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.93, PZZA pays a better dividend. On top of this PZZA pays more dividend than 87.22% of the companies listed in the same industry.
PZZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
On average, the dividend of PZZA grows each year by 8.81%, which is quite nice.
PZZA has paid a dividend for at least 10 years, which is a reliable track record.
PZZA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.81%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
81.41% of the earnings are spent on dividend by PZZA. This is not a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.41%
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
48.66
-0.96 (-1.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners118.39%
Inst Owner Change-1.38%
Ins Owners1.13%
Ins Owner Change0.62%
Market Cap1.59B
Analysts74.55
Price Target53.23 (9.39%)
Short Float %13.62%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP81.41%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)0.08%
Max EPS beat(2)21.54%
EPS beat(4)3
Avg EPS beat(4)11.03%
Min EPS beat(4)-1.65%
Max EPS beat(4)24.17%
EPS beat(8)6
Avg EPS beat(8)10.84%
EPS beat(12)7
Avg EPS beat(12)6.12%
EPS beat(16)9
Avg EPS beat(16)5.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-1.05%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-2.25%
Revenue beat(12)2
Avg Revenue beat(12)-2.54%
Revenue beat(16)3
Avg Revenue beat(16)-2.23%
PT rev (1m)8.48%
PT rev (3m)9.24%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)-23.03%
EPS NY rev (1m)2.79%
EPS NY rev (3m)-1.73%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 21.08 | ||
| P/S | 0.76 | ||
| P/FCF | 28.21 | ||
| P/OCF | 12.12 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.92 |
EPS(TTM)1.83
EY3.76%
EPS(NY)2.31
Fwd EY4.74%
FCF(TTM)1.73
FCFY3.55%
OCF(TTM)4.01
OCFY8.25%
SpS63.65
BVpS-13.19
TBVpS-15.53
PEG (NY)N/A
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROCE | 20.74% | ||
| ROIC | 15.93% | ||
| ROICexc | 16.87% | ||
| ROICexgc | 19.53% | ||
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% | ||
| FCFM | 2.71% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
ROICexc(3y)20.56%
ROICexc(5y)20.67%
ROICexgc(3y)23.77%
ROICexgc(5y)24.21%
ROCE(3y)24.87%
ROCE(5y)24.07%
ROICexcg growth 3Y-9.79%
ROICexcg growth 5Y44.21%
ROICexc growth 3Y-9.04%
ROICexc growth 5Y45.25%
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
F-Score6
Asset Turnover2.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 105.19% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 75.62% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.81 |
F-Score6
WACC8.52%
ROIC/WACC1.87
Cap/Depr(3y)124.88%
Cap/Depr(5y)117.36%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.22%
Profit Quality(3y)80.41%
Profit Quality(5y)690.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.72%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-32.79%
EPS Next Y-23.57%
EPS Next 2Y-0.67%
EPS Next 3Y4.53%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%4.19%
Revenue Next Year3.06%
Revenue Next 2Y1.99%
Revenue Next 3Y2.02%
Revenue Next 5Y6.01%
EBIT growth 1Y-23.35%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year39.73%
EBIT Next 3Y18.32%
EBIT Next 5Y19.41%
FCF growth 1Y-32.36%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-20.75%
OCF growth 3Y-16.73%
OCF growth 5Y11.55%